>> mason: tonight the economic deal hits a somethat that. what house leaders don't like about the senate plan for avoiding tax increases and budget cuts in 2013. report from nancy cordes and major garrett. a new year and new taxes to pay for obamacare. but will it cost jobs? do you think it may affect the number of people you can hire? keeping times square safe on new year's eve. seth doane behind the scenes with the f.b.i. and michelle miller on the portraits that tell the story of the mepls. >> reporter: what are theying? what is it they're trying to convey in these pictures? >> captioning sponsored by cbs this is the "cbs evening news"

with scott pelley. >> pelley: good evening. scott is off tonight, i'm anthony mason. america went over the fiscal cliff at midnight, but we are still waiting to see if it will be a hard fall or a soft landing early this morning, the senate passed a compromise bill that raises income taxes for individuals earning $400,000 a year and families earning $450,000. everyone else would be spared. it would also delay spending cuts for at least two months, and that does not sit well with many house republicans. so where do we go from here? we have two reports beginning with nancy cordes at the capitol. >> reporter: anthony, house republicans do not like this deal. they say it needs serious spending cuts. so tonight house republican leaders are counting votes, trying to figure out if they have enough republican votes and republican votes alone the pass a bill that puts some spending cuts into the deal-- a move they

acknowledge is risky. house speaker john boehner met with house republicans for an hour and a half today. he didn't share his opinion of the bill but many other republicans like alabama's spencer bachus did. >> the senate bill failed miserably in cutting spending. >> reporter: michael conaway of texas. >> i'm unwilling to gag down a deal that is unacceptable. >> reporter: even the number two house republican, virginia's eric cantor, said he could not support the bill in its current form-- despite the fact that it passed the senate at 2:00 this morning with huge bipartisan support. >> the yays are 89, the nays are 8. >> reporter: the bill is the product of the intense last-minute negotiation between senate majority leader mitch mcconnell and vice president joe biden. it contains no major cuts partly because the speaker himself pulled out of talks with the president last month over a grand bargain that would have

cut nearly a trillion dollars in spenting. we asked louisiana republican john fleming about that. this bill makes a lot of tax cuts that republicans like permanent. why not claim victory and then work on spending cuts in the next two months? >> well, that was discussed. and you're right. it makes some things permanent. particularly in the estate tax area. it's permanent fix to the a.m.t.. so there are some actual things we do like about it. but as a whole we don't like other parts of it that we think are going to be devastating to the economy and jobs. >> reporter: congressman steny hoyer and other democratic leaders urged republicans to hold a vote on the bill as is. tonight. >> the definition of compromise has elements in it that each party does not like. >> reporter: and senate democrats are threatening not to take up the bill again if house republicans change it. so, anthony, we are looking at yet another serious stumbling

block in the effort to push off the fiscal cliff tax hikes. >> mason: nancy, how much time do republican leaders have to try to decide whether to amend this bill? >> well, they say they wanted to decide tonight, anthony, for a few reasons. first of all they don't want to leave the american public in limbo. second of all, they have no idea how the stock market will react tomorrow if there's no deal. and, third, in just two days, on january 3, a new congress gets sworn in and if they don't pass a bill by then we go back to square one. >> mason: nancy cordes at the capitol. thank you, nancy. major garrett is following developments at the white house. major, what do you hear from there tonight? >> reporter: anthony, the president spent the afternoon in the oval office, january 1, new year's day, presiding over a country and economy that has technically gone over the fiscal cliff. at this hour, anthony, white house officials tell us the president is somewhat optimistic that republicans, despite their misgivings and reservations will find a way to either have an amendment process or come

narrowly close to one but ultimately allow this senate compromise to come up for an up-or-down vote and the president, in confering with nancy pelosi, believed there are sufficient house democratic votes with a few republican votes to get this deal done. the vice president, joe biden, spent a lot of time with house democrats today. that was a very persuasive presentation, house democratic officials tell me. there are lots of votes on the democratic side. the question is can republicans provide enough on their side to get this deal done. the white house tonight is a bit hopeful. >> mason: major, is this an effort by vice president joe biden or is the president himself getting involved in making calls? >> the president is not making calls white house officials tell me-- for a practical reason. he doesn't have good relationship with house republicans and the white house decided it would do more harm than good. the vice president has an excellent relationship with the house democrats and the white house is basically letting house republicans work this out for themselves and they hope they will sometime later this evening. >> mason: we hope so, too, major garrett at the white house, thanks, major. the new year brought in new laws

around the country. at midnight, maryland became the ninth state to allow marriage. in california and illinois, it's illegal for an employer to demand access to employees social media accounts like facebook. and another provision of the affordable care act goes into effect. medicare taxes increased to 2.35% for individuals who earn more than $200,000 a year and couples earn $250,000. most parts of obamacare will not take effect until next year, but a lot of small businesses are already making plans. >> reporter: at the 5 guys restaurant in new york, burgers and fries are the specialties. but owner john rigos worries he'll have to cook up some cost savings when the affordable care act is fully implemented. do you think it may affect the number of people you can hire? >> it will likely affect the number of people we can hire, yeah. >> mason: rigos, who has ten new york franchises and the 250

employees was waiting until after the election to confront the new health care legislation which will force him to provide insurance for all his full-time workers or face hefty fines. >> he would probably reduce the staff to some degree and, again, focus on building a stronger smaller team rather than being as aggressive in opening up new stores and creating new jobs. >> mason: the new legislation will require businesses with 50 or more workers to provide affordable health care for their employees starting in 2014 or pay a penalty of up to $2,000 per worker. businesses with fewer than 50 employees-- and that's 96% of all companies-- will be exempt. they won't have to do anything. businesses are concerned that this is going to be expensive for them. >> yup. i think that's a real concern for them. >> mason: dr. ezekiel emanuel helped the develop the new plan.

>> near term we are going to see some blip in some costs. but i think actually when we rearrange costs and make it more efficient we are going to see, i think, costs moderate. >> reporter: some companies may find it cheaper, though, to pay the fine rather than buy insurance. in fact, 22% of small companies say they're likely to stop offering health coverage in the next five years. you're not opposed to the principle of everybody having health care. >> i support it. i want to be clear about that. it's a big deal. it's still challenging. there's 25,000 restaurants in the new york city market we're competing against so it's not like we have surplus profit that we can earmark a portion of them go towards these types of initiatives. >> mason: rigos tells us he already met with his lawyer and accountant to put a plan in place. secretary of state hillary clinton remains in the hospital tonight. she's being treated with blood thinners to dissolve a blood clot in her head. margaret brennan is at new york presbyterian hospital. margaret, what are we hearing about her health continue?

>> well, anthony, secretary clinton's spokesperson says he'll share information when there is something to update. when clinton was hospitalized on sunday that same spokesperson said that doctors would monitor her for about 48 hours. we're now beyond that window. but doctors tell us that it usually takes more than two days to establish the proper dose of blood thinner and weeks, even months, to thin out the clot. treatment can last up to six months. >> mason: the secretary, margaret, has about three weeks left in office. essentially, has her term ended now then? >> reporter: well, the secretary was expected to step down at the end of the month once the senate confirms her successor. but today senate staffers told us that right now there is no word yet as to when congress will begin those hearings to approve john kerry as the next secretary of state. clinton herself isn't expected to travel.

these health issues have kept her from all public events for the past three weeks, but she is working from her hospital bed. >> mason: margaret brennan from new york presbyterian hospital. thank you, margaret. a shell oil drilling rig is on the rocks off the coast of alaska. it ran aground last night near an uninhabited island on the state's south coast as it was being towed in a storm. lee cowan reports the coast guard is leading efforts to free the ship and prevent damage to the environment. >> reporter: severe wet has complicated efforts to determine the damage to the 266-foot drill barge called the "kulluk." the concern is not for the true. all 18 aboard were evacuated by the coast guard. the worry is the more than 160,000 gallons of diesel fuel and oil locked deep in the rig's hull, all being relentlessly battered by waves as high as four-story buildings. we spoke by phone with coast guard captain paul meler in anchorage. >> drifting where the "kulluk" sits on the rocks, this is going

to be a challenging response that will take smart, calm people to figure out our way ahead. >> reporter: more than 500 people are involved in staging equipment nearby to help contain any leak or spill. >> there's always the threat with areas -- this vessel is on the rocks and there's still very heavy seas. so that's why we're moving with all these response equipment and preparing. >> reporter: the "kulluk" doesn't have its own propulsion. it was being towed to seattle for maintenance when it broke free. the rig is used largely for test drill and is part of shell's effort to open arctic waters to oil production. that exploration, though, has been opposed by environmentalist out of fear the arctic's harsh conditions are no match for even the most robust equipment. shell says the $290 million "kulluk" is made to withstand ice and its reinforced steel hull should protect its oil and fuel tanks. what the coast guard hopes to do is get salvage workers on the

deck to get an up close look to check for damage or leaks-- weather permitting. if all is well, the next step is to figure out how to get that rig off the rocks, if that's possible in the first place. >> mason: no easy task. lee cowan, thanks, lee. there was a grim start to the new year in chicago. since midnight, at least 11 people have been shot. one was killed-- the city's first homicide in 2013. last year, chicago had more than 500 murders, most involving guns. there was a surprise reunion at the rose parade. and what does it take to keep a million people safe on new year's eve? we'll show you when the "cbs evening news" continues. [ tylenol bottle ] nyquil what are you doing?

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now, i'm on a bayer aspirin regimen. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. [ woman ] learn from my story. >> mason: new york city may throw the most famous new year's eve party in the world, but it's also a top terrorist target. so how does the f.b.i. keep times square safe? seth doane got a rare inside look as a billion people tuned in to watch a million revelers. >> reporter: those huge numbers make the law enforcement math simple. >> it's a nice target. a lot of media, a lot of cameras. times square is a tar get, obviously. >> reporter: that's why randall and his f.b.i. swat team were positioned nearby in this underground garage, cars loaded. >> we were specialized optics, night vision optics for our rifles. >> reporter: in the front seat,

body armor and an m-4 assault rifle. >> if we're called somewhere it's because something really bad has happened and that requires us to have a good show of force. >> everyone have their long arms? >> reporter: last night's operation took months of planning. they were prepared for anything from a terrorist attack to a lone gunman. >> if you see something, you react. >> reporter: assistant director in charge, george venezellos called new year's eve the f.b.i.'s super bowl. >> anything happened, anything of a terrorist nature, it would cause mass chaos. >> reporter: we road along with some of the f.b.i. agents. there were more than a hundred who joined the thousands of new york city police officers. >> we're here to provide real-time response. >> reporter: 23-year f.b.i. veteran chris cottas is a long-time new yorker who says she looks for anything unusual. >> it's whapg where a lot of people don't see.

>> reporter: what are those things? >> there's a lot of different components. the f.b.i. has hazmat, radio logical scenes, sharp shooters, surveillance, undercover officers in the crowd. >> reporter: the partygoers are monitored on cameras and radiation detectors check for threats the revelers cannot see. a block away, an f.b.i. bomb squad showed us the special suits used to diffuse bombs. luckily, there were no major incidents last night so most of the equipment stayed packed away in unassuming s.u.v.s. of the spectacle that is times square, what may be most remarkable is what you never see. seth doane, cbs news, new york. >> mason: america's forgotten war was remembered today at the rose parade in california. the pentagon sponsored a float that was a replica of the korean war memorial in washington, d.c. six veterans of the war were

aboard. there was also a reunion. a soldier just back from afghanistan surprised his wife and son. they'd won a contest to attend but had no idea he'd be marching. how asians are bringing big changes to one texas city. next. . i know it's been a difficult time since your mom passed away. yeah. i miss her a lot, but i'm okay. wow. that was fast. this is the check i've been waiting for. mom had a guaranteed acceptance life insurance policy through the colonial penn program, and this will really help with the cost of her final expenses. is it affordable? it costs less than 35 cents a day-- that's pretty affordable, huh? that's less than the cost of a postage stamp. so, you said it was guaranteed acceptance? yes. it's for people ages 50 to 85. there's no medical exam or health questions. you can't be turned down because of your health. it fit right into mom's budget and gave her added peace of mind.

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texas added more people than any other state, more than 400,000. anna werner is in houston with more on who those people are. >> reporter: jesse we came to america five years ago to do what he says he couldn't in taiwan: open his own pastry cafe. he followed other asians-- not to the west coast or northeast, but to southeast texas. >> i found it's a very good opportunity. houston keeps growing and growing. >> reporter: keeps growing and growing? >> yes. >> reporter: in 1980, there were just 32,000 asians living in houston. now there are more than 100,000. texas is already home to almost a million asians, changing the state and its economy. when you came here, your first shop, you employed three people. >> yes. >> reporter: how many do you employ now? >> including part time? total is 18 people. >> reporter: 18 people.

immigrants from asia and latin america have become critical components in a texas job machine that's created more than 200,000 jobs in houston and more than half a million jobs statewide since the great recession. the majority of the new jobs in houston are held by immigrants and children of immigrants. rice university sociologist steven kleinberg is closely studying houston's transformation. >> this city has gone through just fundamental transformation. become really at the center of the new america of the 21st century. >> reporter: the percentage of non-white houston residents is now 60%. that's greater than new york city >> immigration is network. you go where you know people. so once you get a critical mass, others follow. >> reporter: ethnic diversity has also helped diversify houston's economy. a city built on big oil now sees more of its growth in health care, education, technology, and service jobs. like those jesse wu created when he moved this to this brand new

shopping mall packed with other new businesses started by immigrants. >> i've tried to make my dream come true. >> reporter: did you make your dream come true? >> so far so good. >> reporter: an american dream that's redefined what it means to be a texan. anna werner, cbs news, houston. >> mason: so far so good. where is the best place to be born in 2013? according to a new quality of life index published in the "economist" magazine, it's not the united states. we're only 16th best, tied with germany. australia ranks second, switzerland is number one. they were born into slavery but 150 years ago today they began to visualize freedom. that's next. i have a cold, and i took nyquil,

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>> mason: 150 years ago today in a nation torn by civil war president abraham lincoln declared slaves in rebel states to be forever free. the emancipation proclamation did not end the war. but as michelle miller reports, it freed african americans to see themselves in a new light. >> reporter: many of these images have never been seen by the public. taken between 1860 and 1880, they show newly freed blacks in elegant dress looking poised and

confident. history professor barbara krauthammer has studied them for ten years. what is it they're trying to convey in these pictures? >> i think after emancipation, after 1863 and the emancipation proclamation the pictures were a after 1863 and the emancipation proclamation the pictures were a way of reaffirming that freedom and the sense of dignity and humanity that accompanied freedom. >> reporter: more than a thousand of the photos were discovered in archives and libraries across the country. like here at the home isberg research center in harlem where a dozen of them are on display to mark the proclamation's anniversary. the photographs are also part of a new book co-written by krauthammer called "envisioning emancipation." >> i think the legacy of the emancipation proclamation gave every african american person a sense of hope and a sense of inspiration. >> reporter: what was it about posing in uniform? >> well, look at them. they're so dignified.

they're the epitome of manhood, of patriotism, of honor. there really was a sense that they were fighting for their people and for their nation. >> reporter: in this family photograph, the various skin complexions of the children exposed one of slavery's most disturbing legacies. so all of these are black children? >> yes. it was supposed to speak in part to the sexual abuse of enslaved women by their masters and by other slave holding then the south. >> reporter: nearly all of the pictures were taken by black photographers. >> for free black people in the 19th century united states, photography proved to be a very powerful and important way of representing themselves as americans, as intellectuals, as artists. >> reporter: a view of freedom put in focus by a lens. michelle miller, cbs news, new york. >> mason: and that's the "cbs evening news." for scott pelley, i'm anthony

mason. thanks for watching. we will have a vote in the house when the senate acts. that's what he said, that's what we expect. that's what the american people deserve. >> congress is addicted to spending money. maybe they should join spending anonymous. >> fiscal cliff frustration. the fate of your next paycheck sits with the house of representatives. the senate passed a bill early this morning, but the house republicans, including the majority leader say that they need to see more spending cuts on the table. vice president joe biden is trying to broker a deal in the house the same way he did in the senate. reporter danielle nottingham with more. >> reporter: house gop members left closed